Kieran Maguire drops Man United deal surprise - 'many people don’t realise…'
Adidas are losing money from their 10-year kit manufacturer deal with Man United.
That is the opinion of finance expert Kieran Maguire, who exclusively told Football Insider that the German sports brand is willing to incur losses in order to ‘enhance’ their brand at one of the world’s biggest football clubs.
The Red Devils announced this summer that they have renewed their deal with Adidas as their kit manufacturer in a new 10-year deal.
It is a record-breaking agreement in the Premier League with a value of £90million per season, although clauses in the contract can lower the value.
As revealed by Football Insider (10 November), the renewed deal between Adidas and Man United includes an £80million Champions League contract clause.
Maguire praised United’s ability to strike lucrative commercial deals, revealing that brands are willing to sacrifice profit in order to be connected to the club.
“Manchester United set a gold standard as far as commercial partners are concerned,” Maguire told Football Insider’s Sean Fisher.
“What many people don’t realise is that Adidas are actually losing money on the deal.
“The profits that they make from shirt sales doesn’t cover the amount of money that they’re actually paying to Manchester United.
“But they’re still willing to do that because it actually enhances the overall value of the Adidas brand.
“So to a certain extent, it’s like a second front-of-shirt sponsor having the three stripes on the Manchester United kit.
“There are very few clubs that senior merchandise manufacturers would be willing to incur losses on.“